Maxwell Technologies gets boost from wind turbine projects

Renewable energy wind turbine projects, mostly in Asia and Europe, are giving a boost to San Diego’s Maxwell Technologies.

The San Diego company said sales of its ultra-capacitors used in wind turbines are up 40 percent through the first nine months of this year.

Chief Executive David Schramm said demand is strongest in Asia and Europe. In the U.S., wind projects are on the drawing boards but have been slower to come out of the ground.

“The U.S. talks a good story about green energy, but Asia and Europe are actually doing it,” he said.

Maxwell makes ultra-capacitors, which are battery-like devices that store energy. What makes them different from batteries, however, is they’re capable of releasing all their power in short bursts. They also recharge relatively quickly.

In wind turbine farms, the ultra-capacitors are used in electrical blade pitch systems that tilt the blades of massive windmills so they work efficiently based on wind speed. They also are used to smooth out the flow of wind farm output into the electric utility grid. About 60 percent of new wind turbines use electrical blade controls, while the rest employ hydraulic systems that don’t need ultra capacitors.

During high winds, such as the Santa Ana winds in Southern California, these blade control systems also help protect the windmills from spinning too fast and destroying themselves, Schramm noted.

Maxwell said its ultra-capacitors are installed in 13,000 wind turbines worldwide. Citing industry analysts, the company said 38 gigawatts of new wind power were added worldwide in 2009, bringing the total amount to 160 gigawatts. The industry has maintained a annual growth rate of about 30 percent for the past three years.

Maxwell makes ultra capacitors for two main markets -- wind turbines and hybrid electric buses. Schramm said the market for hybrid buses also has been growing, particularly in China, which aims to have large fleets of hybrid buses operating in 30 cities over the next few years.

Maxwell’s Ultra capacitor sales increased 48 percent in the second qurater to $15.9 million, compared with $10.7 million in the same quarter a year ago.

But that wasn’t enough of a gain to swing Maxwell to a profit in the second quarter. The company, which also makes high voltage capacitors used in the electrical grid and specialty micro-electronics for satellites and spacecraft, lost $2.1 million, or 10 cents a share during the quarter. Sales were $29.5 million. That compares to a loss of $5.3 million, or 22 cents a share, for the same quarter last year on sales of $24.7 million.